In a time when every penny counts, President Joe Biden is calling out a subtle but growing trend that hits consumers where it hurts most: their wallets. Dubbed shrinkflation, the practice of reducing product sizes while keeping prices steady is drawing the ire of the White House. From everyday snack aisles to the freezer section, Americans are getting less for the same price, a move Biden labels as a corporate sleight of hand at the expense of the public.
In a recent address to MGM Resorts Management and Culinary Leaders in Las Vegas, Biden underscored the significance of union movements and job dignity, while also touching on the state of the U.S. economy, specifically focusing on inflation and corporate practices. The president highlighted the essential role of unions in enhancing overall economic well-being, stating, “When unions are doing well, everybody does well.” This sentiment was supported by a Treasury Department study, which found that the success of union movements positively impacts even nonunion workers through increased wages.
More on the economy: Passive income investments are one of the most trusted methods for riding out a recession, so it's no surprise that people are turning to this multifamily portfolio fund that's targeting an 8% cash yield.
During his speech, Biden also critiqued the concept of trickle-down economics, advocating instead for an economy that grows from the middle out and the bottom up, emphasizing the importance of the middle class and unions in building a robust economy. He referred to himself as “the most pro-union president in American history,” underscoring his belief in the critical role of unions in securing a fair and prosperous economic landscape for all.
On the topic of inflation, the president addressed the recent shrinkflation trend. Highlighting the example of Snickers bars, which have seen a size reduction to offset costs without raising prices, Biden labeled such practices as a form of corporate greed. He remarked, “Snickers bars — you know that candy? Well, they haven't raised the price of a Snickers bar. They just took 10% of it out. So, that’s how they’re making more money.”
Expanding on his criticism of shrinkflation, Biden took to social media ahead of the Super Bowl to express his frustration with snack companies that are giving consumers less for their money. In a video posted to X, he said, "Sports drinks bottles are smaller, a bag of chips has fewer chips, but they're still charging just as much. As an ice-cream lover, what makes me the most angry is that ice-cream cartons have actually shrunk in size." Biden described shrinkflation as a "rip off," stating, "Some companies are trying to pull a fast one by shrinking the products little by little and hoping you won't notice."
The president’s comments highlight how shrinkflation is manifesting in various consumer products, noting, "The American public is tired of being played for suckers."
Recent data indicates a gradual easing of price pressures across the U.S. The consumer price index (CPI) rose 3.1% in January relative to the previous year, marking a decrease from 3.4% in December. This decline in inflation rates suggests that consumers’ buying power is on the rise, with workers’ real average hourly earnings increasing by 1.4% between January 2023 and January 2024. Despite some areas of concern, such as increases in shelter, food, electricity costs and airline fares, experts Moody’s Analytics Chief Economist Mark Zandi view these as temporary setbacks in the broader disinflation trend.
Read Next:
- Elon Musk has reportedly bought 6,000 acres of land just outside of Austin. Here’s how to invest in the city’s growth before he floods it with new tech workers.
- Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here are 3 high-yield investments to add significant income to your portfolio.
- Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Jeff Bezos gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
